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JSE expands Quanto Futures range to include nine new commodities

April 19, 2013 at 3:31 AM EDT

Johannesburg, 16th April 2013 – Market participants will be able to obtain exposure to nine new foreign-referenced soft and hard commodities thanks to the JSE's expansion of its Quanto Futures range. Products to be introduced under license from the CME Group are heating oil, gasoline, natural gas, palladium, sugar, cotton, cocoa, coffee and corn.

With the exception of corn, this is the first time South African investors can gain exposure to these commodities in Rands without using their foreign allowance allocations. Products track the pricing of international commodities markets NYMEX and the Chicago Board of Trade. Chris Sturgess, Director of the Commodity Derivatives at the JSE says "With the current Rand Dollar volatility Quanto Futures have been well-received by our market with much demand for new products to be listed. The JSE is very pleased to once again work with the CME Group to bring international commodities markets closer to South African investors."

A Quanto Future is a rand denominated commodity derivative that enables investors to gain exposure to the price movements in the underlying foreign commodity while shielding them from fluctuations in the Rand Dollar exchange rate. Rand Merchant Bank will be the market maker for the additional products.

About JSE LimitedAs South Africa's only full service securities exchange, the JSE connects buyers and sellers in five different financial markets, namely equities, equity derivatives, commodity derivatives, currency derivatives and interest rate products. The JSE Ltd offers the investor a truly first world trading environment, with world class technology, surveillance and settlement in an emerging market context. It is amongst the top 20 largest equities exchanges in terms of market capitalisation in the world. In terms of derivatives, the JSE is currently ranked the 20th largest exchange by the Futures Industry Association (FIA). For further information, please visit http://www.jse.co.za/